Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

6. DEBT

Debt consisted of the following (in millions): 

	March 31,		December 31,		March 31,
	2022		2021		2021
Revolving credit facility	$	80.7	$	67.1	$	111.2
Other obligations		4.6		4.3		4.0
Total debt		85.3		71.4		115.2
Less current maturities of long-term debt		1.8		1.8		1.7
Long-term debt, less current maturities	$	83.5	$	69.6	$	113.5

Credit Facility — In the third quarter of 2021, the Company entered into a five-year, $250.0 million asset-based senior secured revolving credit facility (the “credit facility”) with a maturity date of September 29, 2026, replacing its prior credit facility. Borrowing availability under the credit facility is based on eligible accounts receivable, inventory and real estate. The real estate component of the borrowing base amortizes monthly over 15.0 years on a straight-line basis. Borrowings under the credit facility are collateralized by substantially all of the Company’s assets, and the Company is subject to certain operating limitations applicable to a loan of this type, which, among other things, place limitations on indebtedness, liens, investments, mergers and acquisitions, dispositions of assets, cash dividends and transactions with affiliates.  

At March 31, 2022, the Company had revolving credit borrowings of $80.7 million outstanding at a weighted average interest rate of 1.84% per annum, letters of credit outstanding totaling $3.5 million, primarily used as collateral for health and workers’ compensation insurance, and $163.9 million of excess committed borrowing availability.  The Company pays an unused commitment fee of 0.25% per annum. In addition, the Company had $0.6 million of other obligations maturing in 2023 at a borrowing rate of 6.11%. The Company also had $4.0 million of financing lease obligations at March 31, 2022. See Note 4 – “Leases” for more information.  

The sole financial covenant in the credit facility is the minimum fixed charge coverage ratio (“FCCR”) of 1.00:1.00, which must be tested by the Company if the excess committed borrowing availability falls below an amount in the range of $15.0 million to $25.0 million, depending on the borrowing base. Since the inception of the agreement in 2021, the Company was not required to test the minimum FCCR as excess borrowing availability was greater than the minimum threshold. If the Company’s availability would have fallen below that threshold, the Company would have met the minimum FCCR. The FCCR must also be tested on a pro forma basis prior to consummation of certain significant business transactions outside the ordinary course of business, as defined in the agreement.